There are several real life examples of the future value of money. The most common example is an annuity. Annuity is a stream of cash flows that you receive for some time in the future. This can be due to several reasons. you can win a lottery and you can chose to take a stream of fixed cash flows over a period of time. You can ...
The solution provides a practical example of the future value of money using lottery as an example. The solution is concise and to the point and a numerical example has also been provided.